What's the solution to the world's growing energy problem? PERFECT POWER Electric usage is rising. Fuel costs are rocketing. Blackouts are happening more frequently. Why? Because our electrical power system--built on a vast network of resources including nuclear energy, natural gas, water, and coal--has become woefully outdated, increasingly expensive, and dangerously fragile. We need to change the current system, and we need to do it now. Written by business visionary and former Motorola chairman Robert Galvin, Perfect Power shows us how to create a “perfect” system that can deliver power where needed, at an astonishing reliability standard of 99.9999999 percent. By super-charging the “Six Sigma” concepts that Galvin developed as the founder and CEO at Motorola, we can Meet the energy reliability and quality needs of the Digital Age - Generate new goods and services that create jobs, empower consumers, and lower energy cost - Eliminate wasteful spending on our electrical infrastructure that can be used for peak power needs - Facilitate local, regional, and, ultimately, national energy independence - Fundamentally reduce the impact of energy on the environment - Invest in the microgrid revolution Energy providers and policy makers will reinvent today's centralized power systems and integrate them with new, efficient “microgrids." Investors and entrepreneurs will spot tomorrow's hottest technologies. Consumers will demand change from “the powers that be.” And environmentalists will take advantage of cleaner, greener energy sources available. We have the power to fulfill our energy needs, fix our old systems, forge ahead with new ideas, and fuel our dreams. It's Perfect Power . Robert Galvin is former Chairman and CEO of Motorola, Inc., where he pioneered the concept of “Six-Sigma Quality” and helped revolutionize telecommunications technology with government officials, regulators, and companies. He currently heads the Galvin Electricity Initiative, which supports “Perfect Power” innovations. Kurt Yeager is former President and CEO of the Electric Power Research Institute, the electric power industry's leading think tank, which conducts research in the United States and forty countries. Jay Stuller is the author of seven books and nearly a thousand articles. He has worked in public affairs and communications at Chevron Corporation. The Book That Will Revolutionize and Electrify Our Energy Crisis From Robert Galvin, Motorola's visionary leader and legendary former CEO, and Kurt Yeager, former CEO of the Electric Power Research Institute, comes a powerful wake-up call for the entire energy industry. A must-read for investors, entrepreneurs, homeowners, and environmentalists, Perfect Power offers bold new solutions, investments, and job opportunities that address the biggest energy problems we face today, including how to Meet the rising demands for more electricity - Create “Perfect Power” that will withstand hurricanes, blackouts, terrorism, and technical malfunctions - Implement clean, “green” alternatives by tapping the smart microgrid revolution - Live “off the grid” and become energy self-sufficient - Identify and invest in exciting new companies and technologies “Reinventing our nation’s electric supply system is at the heart of solving our climate change and energy security problems. This book underscores the urgency of modernizing our grid and our business models to meet this challenge for our future generations.” —James E. Rogers, Chairman, President, and Chief Executive Officer, Duke Energy Robert Galvin is former Chairman and CEO of Motorola, Inc., where he pioneered the concept of “Six-Sigma Quality” and helped revolutionize telecommunications technology with government officials, regulators, and companies. He currently heads the Galvin Electricity Initiative, which supports “Perfect Power” innovations. Kurt Yeager is former President and CEO of the Electric Power Research Institute, the electric power industry's leading think tank, which conducts research in the United States and forty countries. Jay Stuller is the author of seven books and nearly a thousand articles. He has worked in public affairs and communications at Chevron Corporation. PERFECT POWER HOW THE MICROGRID REVOLUTION WILL UNLEASH CLEANER, GREENER, AND MORE ABUNDANT ENERGY By ROBERT GALVIN KURT YEAGER JAY STULLER The McGraw-Hill Companies, Inc. Copyright © 2009 McGraw-Hill, Inc. All right reserved. ISBN: 978-0-07-154882-3 Contents Chapter One The Heat Is On While largely unrecognized by the public and government officials, North America's aging, inefficient, and dangerously unreliable electrical infrastructure is crumbling. In an era of precise digital power demands and serious environmental concerns, this system is also needlessly wasteful, bleeding energy throughout the creation, delivery, and use of that electricity. In short, our electric power infrastructure is as incompati